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42 sats \ 4 replies \ @0xbitcoiner OP 20 Nov \ parent \ on: Productivity of the World’s Largest 30 Economies (2005-2025) econ
I’m not sure, I don’t even know if it makes sense to factor inflation into that indicator. You think they should factor in inflation? cc/ @Undisciplined
No. It’s a cross-sectional snapshot.
There are other adjustments that are worth considering, like whether they did or should use a purchasing power parity adjustment. That might depend more on whether standard of living or output efficiency is of greater interest.
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No. It’s a cross-sectional snapshot.
That makes sense to me if the only comparisons made are relative to each other, fixed at any one chosen point in time or a chosen period.
But saying for example that Belgium's GDP per hour has grown by 12.4% since 2005 seems off if the measuring stick has changed so much over 20 years.
Edit to add: If inflation doesn't matter, does that mean we would get the same value out of the charts if it was denominated in, say, Turkish Lira?
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I see what you mean. I was just thinking about the rankings in each period, which only requires doing the right currency conversion (less trivial than it sounds).
Yeah, if you’re interested in the slope between periods, then getting the inflation adjustment right also matters.
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Take a closer look here:
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